Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 8IAPA
To determine
To find:
The efficient level of price, quantity and
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Students have asked these similar questions
Economics
A market faces the following demand curve: Q = 10 - 1/5P, and a cost function: TC = 25Q^2 - 250Q + 200.
a) Calculate the price and quantity that maximize profits if the company operates as a monopolist. Calculate the total profit.
b) If the government removes entry barriers and the market becomes perfectly competitive, calculate the price, quantity, and profit of the company.
c) GRAPH and mark the changes in consumer surplus, producer surplus, and market efficiency.
PLEASE I NEED THE GRAPH. AND ALSO RESPOND IN ORDER PLEASE, STAY WHICH IS A WHICH B AND WHICH IS C
Question 2
Suppose Demand for Apples (in bushels) is given by Q = 90-2P and Supply is given by Q = P. The market for apples is dominated by a single, monopolistic firm "NYC Apples". Suppose you could regulate the market for Apples and impose a price ceiling. What price would maximize social welfare (combined producer and consumer surplus)?
Full explain this question and text typing work only thanks
1.
The problem with regulating a natural monopoly at marginal cost pricing is that
regulations are generally impossible to enforce.
the cost of regulation outweighs any potential benefits.
regulating a market causes more deadweight loss.
the monopolist firm will lose money and want to shut down.
2.
Suppose an oil refinery produces air pollution that negatively affects the surrounding residents. Which of the following is not a policy the government could take to correct this externality?
-Subsidize the refinery’s product.
-Require the refinery to pay for and install scrubbers so that no pollution is released.
-Estimate the damages caused by the pollution and force the refinery to pay that amount.
-Enact an excise tax on the refinery’s product.
Chapter 16 Solutions
Foundations of Economics, Student Value Edition (8th Edition)
Ch. 16 - Prob. 1SPPACh. 16 - Prob. 2SPPACh. 16 - Prob. 3SPPACh. 16 - Prob. 4SPPACh. 16 - Prob. 5SPPACh. 16 - Prob. 6SPPACh. 16 - Prob. 7SPPACh. 16 - Prob. 8SPPACh. 16 - Prob. 9SPPACh. 16 - Prob. 10SPPA
Ch. 16 - Prob. 11SPPACh. 16 - Prob. 1IAPACh. 16 - Prob. 2IAPACh. 16 - Prob. 3IAPACh. 16 - Prob. 4IAPACh. 16 - Prob. 5IAPACh. 16 - Prob. 6IAPACh. 16 - Prob. 7IAPACh. 16 - Prob. 8IAPACh. 16 - Prob. 9IAPACh. 16 - Prob. 10IAPACh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Prob. 3MCQCh. 16 - Prob. 4MCQCh. 16 - Prob. 5MCQCh. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQ
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- How would you describe the development of the market regulation and the concept of "fair competition" in the market?arrow_forward26) Winter has a monopoly on the production of walnuts. The demand curve and marginal cost are given by: P = 360-4Q; MC= 4Q. At the level of output that maximizes profit. How much is producer surplus? 27) In relation to the previous question, determine the welfare loss for society. a) 0 b) 450 c) 900 d) 1800 e) None of the above. Good night , Please check question number 26 to resolve this question please. Do only 27arrow_forwardOur local township sits on top of a large natural gas reservoir. The benefit of extractingnatural gas and the cost are depicted in the figure. Characterize the competitive solution, assuming no regulation. Next, assume a regulator would like to maximize the surplus from the resource.What would the solution be? Depict the new solution, drawing a second figure.arrow_forward
- There is a market with monopoly conditions with Q= 100-P (demand) and MC-AC-20. The monopoly price and quantity levels are Pm= 60 and Qm-40, meanwhile the equilibrium of competition is Pe=20 and Qe=80. Calculate: a. Draw the condition curve and show the CS, PS and regions DWL? b. Value of Consumer Surplus (CS) and Producen Surplus (PS) at the time of competition? c. Value of Consumer Surplus (CS), Producen Surplus (PS) and Deadweight Loss (DWL) at the time of monopoly?arrow_forwardGeorge has a monopoly on burrito sales in a small town in Kansas. The burritos cost him a constant $5 each to produce. He faces following demand schedule for his product: Price Quantity Demanded $30 0 $25 1 $20 2 $15 3 $10 4 $5 5 $0 6 Under normal monopoly conditions, how many burritos should he produce, what price should he charge, and how much profit can he expect to make? Draw a graph under these assumptions showing (and calculating) producer surplus, consumer surplus, economic surplus, and deadweight loss. If George could engage in perfect price discrimination, how many burritos would he produce, what would his total revenue be, and how much profit would he earn? Draw a graph under these assumptions showing (and calculating) producer surplus, consumer surplus, economic surplus, and deadweight loss. Is society better off by allowing George to perfectly price discriminate? Defend your answer.arrow_forwardQuestion #10: What is an economic regulation? (Read Chapter 4, 27 and 28), or MindTap Microeconomics 9e (Ch 4, ch. 13, and ch.14) -Boyes W. and Melvin M. (2014), Economics (Full), 10th Edition, South-Western, Cengage Learning. OR -MindTap for Boyes’ Microeconomics 9e. one-page explanation.arrow_forward
- Explain in brief. a) Why government should intervention in a monopoly market. b) Give a practical example of government intervention in the monopoly market.arrow_forwardPrice =120-Q^2 Total cost = 30Q Find: 1- consumer surplus 2- profit 3- total social welfare 4- deadweight loss In both perfect competition and pure monopolyarrow_forward
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